Republic Airways Completes Acquisition of Frontier AirlinesIndianapolis (Oct. 1, 2009) – Republic Airways Holdings (NASDAQ/NM: RJET) todayannounced that it has completed its acquisition of Denver-based Frontier Airlines Holdings.Republic, which was the sponsor of Frontier’s plan of reorganization, acquired 100% of theequity in the reorganized company for $108.75 million via an auction process in Frontier’sChapter 11 bankruptcy case.With the close of the transaction, Frontier joins Chautauqua Airlines, Midwest Airlines, MokuleleAirlines, Republic Airlines and Shuttle America as a subsidiary of Republic Airways Holdings.On July 31, Republic completed its acquisition of Milwaukee-based Midwest Airlines. Republicplans to continue both the Frontier and Midwest brands while leveraging their unique strengthsacross the combined network.“We welcome Frontier into the Republic Airways family,” said Bryan Bedford, Chairman,President and CEO of Republic. “We thank the employees of Frontier for their hard work andthe customers of Frontier for their continued loyalty. Frontier’s successful exit from Chapter 11closes a difficult chapter in its history and allows us to move forward together to capitalize onthe many opportunities to make two excellent brands even stronger.”Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company thatowns Chautauqua Airlines, Frontier Airlines, Lynx Aviation, Midwest Airlines, Mokulele Airlines,Republic Airlines and Shuttle America, collectively “the airlines.” The airlines offer scheduledpassenger service on approximately 1,800 flights daily to 126 cities in 47 states, Canada,Mexico and Costa Rica under branded operations at Frontier, Midwest and Mokulele, andthrough fixed-fee airline services agreements with five major U.S. airlines. The fixed-fee flightsare operated under an airline partner brand, such as AmericanConnection, Continental Express,Delta Connection, United Express, and US Airways Express. The airlines currently employ over11,000 aviation professionals and operate 294 aircraftIn addition to historical information, this release contains forward-looking statements. RepublicAirways may, from time-to-time, make written or oral forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. Such statements encompassRepublic Airways’ beliefs, expectations, hopes or intentions regarding future events. Wordssuch as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressionsidentify forward-looking statements. All forward-looking statements included in this release aremade as of the date hereof and are based on information available to Republic Airways as ofsuch date. Republic Airways assumes no obligation to update any forward-looking statement.Actual results may vary, and may vary materially, from those anticipated, estimated, projectedor expected for a number of reasons, including, among others, the risks discussed in our Form10-K and our other filings made with the Securities and Exchange Commission, whichdiscussions are incorporated into this release by reference.

Republic Airway Holdings, wooed by some $27 million in tax credits offered by the state of Wisconsin, will pack up and move its heavy maintenance and some administrative jobs from Denver to Milwaukee.

The job transfers will include 220 from Frontier Airlines' DEN maintenance base and 120 positions from its Las Cruces, N.M., call center. About 250-300 Republic flight crew members also will be based in Milwaukee, a company spokesperson told ATWOnline yesterday. "We don't have an exact number or breakdown of what those new positions might be. This process will take into next year to complete," the spokesperson said.

Republic said the move from Denver will preserve more than 700 jobs in Milwaukee and eventually will add up to as many as 800. It also will help further operation consolidation following Republic's acquisition of Frontier and Midwest Airlines. "Our expansion in Milwaukee sends an important message to our current and future frequent flyers and to the local and state communities about our dedication to remain Milwaukee's hometown airline," Republic President and CEO Bryan Bedford said. Midwest will expand its schedule out of MKE with flights to Raleigh-Durham starting April 1 and to San Francisco on April 19.

When Republic's acquisition of Frontier was finalized in October, Bedford told ATW, "Frontier Airlines has no place to go and we're not leaving Denver. There is nothing that would cause Frontier to capitulate." At the same time, he acknowledged that he was seeking concessions from DEN, through either rent adjustments or tax breaks, to offset what he considered the high price of doing business in Colorado.

The Denver Business Journal reported last month that the city and state offered a package of tax credits and financial incentives to Republic but that they would apply only if it increased the base of 4,000 Frontier workers. At that time, government officials expressed concern that 900 maintenance, customer relations and headquarters positions could be relocated.

[quote}Nov. 8 (Bloomberg) -- Republic Airways Holdings Inc. said it had reached agreement with lessors on cutting Airbus SAS A319 payments by $26 million next year and returning four aircraft, as it turns around unit Frontier Airlines.

The carrier will return the planes in the first quarter of next year, it said in a Businesswire statement dated today. The Indianapolis-based company has also deferred delivery of four Embraer SA E190 planes and agreed to return two others to lessors ahead of schedule.

Republic said it has achieved “substantially” all of its restructuring goals for Frontier under a plan designed to generate $120 million in annual improvement at the unit, which was bought out of bankruptcy in 2009. That helped the carrier post better-than-estimated third-quarter ex-item net income of $20.4 million or 40 cents a share.

“We are beginning to see the benefits of our network- restructuring efforts,” Bryan Bedford, Republic’s chairman and chief executive officer, said in the statement. “Our team remains focused on optimizing the fleet at Frontier to produce a sustainable and profitable network.”

Republic was expected to post ex-item net income of 24 cents a share based on the average of seven analyst estimates compiled by Bloomberg. A year earlier, net income, excluding items, was $25.9 million.

The carrier had $15.3 million of ex-item, pre-tax income at its branded operations in the quarter. The company also flies regional services for other carriers, such as Delta Air Lines Inc. and American Airlines.

A320neo Order

Republic completed a previously announced agreement to buy 80 A320neo planes from Airbus, it said. The company’s total operational fleet declined by three planes to 279 in the third quarter.

Republic fell 0.7 percent to $2.69 in New York trading yesterday. It has tumbled 66 percent in the past year.

On a GAAP basis, Republic reported net income of $9.0 million, compared with $21.1 million a year earlier. The profit ended a succession of three quarterly losses that began in the last three months of 2010.

The carrier will accept two Embraer E-190 planes in the fourth quarter. It will return two E-190s to lessors late next year.

An agreement with Embraer on deferring new planes would make about $20 million in cash available to Republic, Bedford wrote in a memo to employees last month,

The company is considering further steps to boost liquidity, which may include issuing debt backed by spare parts and selling some assets, it said without elaboration.

Steps under study in a second round of restructuring at Frontier, worth about $113 million, include selling flight slots at Ronald Reagan Washington National Airport valued at almost $50 million, and 10 Embraer E190 jets, for a total of about $40 million, according to Bedford’s memo[/quote]http://www.businessweek.com/news/2011-11-08/republic-wins-26-million-a319-lease-cuts-will-return-planes.html